Asian shares and U.S. stock futures climbed Monday as technology stocks clawed back some losses from the previous week, with Taiwan’s Taiex jumping 5.6%, matching TSMC’s gain.

Lower international oil prices and bargain-buying in technology and semiconductor shares helped lift sentiment, while investors weighed whether the move marked a durable recovery or just a temporary bounce.

Nvidia bucked the rally, dropping 4.98% to $177.34 amid reports involving Jensen Huang and a Singapore-based business executive; its board has opened an independent investigation, and the company said it had no reason to believe national security or business secrets were compromised.

The wider selloff reflected high interest rates, inflation and energy costs, hedge-fund deleveraging, and concerns over AI data-center regulation and returns—not a collapse in underlying AI demand.

The scale of AI spending is still prompting questions about profitability: HQ Trust strategist Pascal Kielkopf said four companies generated about $240 billion in free cash flow in 2024, but analysts expect little surplus in 2026 and a substantial deficit in 2027, while the pace of AI revenue growth remains uncertain.

Major technology earnings due this week will test confidence in the AI trade, particularly over whether expensive infrastructure expansion can deliver profits and how companies will manage debt burdens.

Still, nearly 70 GW of U.S. data-center projects under construction or committed are unaffected by local permitting pauses and could support Taiwanese suppliers’ orders through 2027; tighter energy requirements may also lift demand for efficient power and cooling systems.

Taiwan’s National Financial Stabilization Fund was authorized to intervene as needed to reduce volatility, with NT$500 billion (US$15.2 billion) available; this is its 10th intervention since it was established in 2000.

The fund’s headline capacity does not mean it will spend that much: Goldman Sachs Group’s sales and trading desk said previous interventions ranged from NT$760 million to NT$122.7 billion and typically targeted large-cap technology and financial stocks.

Analysts urged investors not to chase the rebound, recommending gradual entries and disciplined position sizing; they said the outlook will depend on margin deleveraging, foreign-investor flows, the New Taiwan dollar, global markets and measures of investor fear.

Whether the recovery holds will also depend on large-cap stocks, trading volume and foreign institutional investors returning as net buyers; without stronger volume and foreign demand, the advance could remain a technical rebound.

TSMC has announced neither an investment nor a production timeline, and any new memory-chip supply would be years away.